The approval of crypto exchange-traded funds (ETFs) has been a contentious issue in financial regulation for years, with Bitcoin ETF applications dating back over a decade. The recent SEC approval of Bitcoin ETFs in early 2024 highlighted regulatory caution and the complexities surrounding digital asset markets. Now, the SEC is reviewing proposals from Nasdaq, NYSE Arca, and Cboe BZX to implement generic listing standards for crypto ETFs, which would streamline the approval process from 240 days to approximately 60-75 days. These standards could pave the way for a wider range of ETFs tied to various cryptocurrencies beyond just Bitcoin and Ether, thereby increasing investor choice while ensuring sufficient maturity of the underlying assets. Critics point out that ETFs may financialize crypto assets, yet they provide enhanced transparency and regulatory oversight. As the US is lagging in crypto regulatory clarity compared to the EU and Singapore, the SEC's potential approval of these standards could reinforce the US's position in integrating digital assets into regulated markets. If successful, exchanges could list a first wave of altcoin ETFs by the end of 2025, fostering innovation and keeping the US at the forefront of market advancement.

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